Paying For Elder Care Private Financing vs Medicaid

Many older adults and caregivers worry about how they will pay for future elder care expenses. Even families who have savings set aside often find elder care expenses are greater than they expected. Whether your loved one will live at home, an assisted living facility, or a nursing home, it is important to plan and learn more about different financing options.
Medicaid
Medicaid is a federal and state program for low-income families. With Medicaid, qualifying individuals can get coverage for medical care and long-term care. While estimates vary, it is safe to say that Medicaid pays between 45 and 65 percent of an individual’s total nursing home costs. To qualify, people must meet specific requirements, including the means test, which will analyze their income and financial assets.
Medicaid generally covers the following:
- Medical, support, and prescription costs
- Long-term nursing home care
- Community-based alternatives to nursing homes
- Nursing services
- Personal assistance services
- Adaptive aids
- Medical supplies
- Assisted living
- Minor home modifications
- Respite care
Private Financing
At first, many older adults will try to pay for care out of pocket. Many people have personal savings, a pension, retirement funds, or income from stocks. However, many families use private payment options, including long-term care insurance or life insurance policies, to pay for care.
Long-term care insurance covers many types of care benefits. The exact coverage will depend on the type of policy you buy and the services it covers. Some individuals purchase only nursing home coverage or a comprehensive policy that includes home and facility care. Many people like private financing because it gives them the flexibility to adjust their coverage to their specific needs.
Are you worried about how you will pay for crucial healthcare expenses? Marsden Law P.C. can advise you about strategies to protect your assets. Call us today at (508) 858-5324!
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